Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Yellen Says Communications Now Playing ‘Big Role’ in Fed Policy

Jan. 5 (Bloomberg) -- Federal Reserve Vice Chairman Janet Yellen said Fed communication of its policy aims plays a “big role” in supporting the economy now that the central bank’s benchmark interest rate is close to zero.

The Federal Open Market Committee last month linked its policy to economic indicators for the first time, saying it will keep rates low as long as the unemployment rate is above 6.5 percent and the outlook for inflation is no more than 2.5 percent. The Fed previously said it will maintain low rates through at least mid-2015.

“Communications play a big role” in monetary policy, Yellen said.

The Fed can change the interest it pays on excess bank reserves when it comes time for the Fed to begin withdrawing its record stimulus, Yellen said on a panel today at the American Economic Association’s annual meeting in San Diego.

To contact the reporter on this story: Aki Ito in San Francisco at aito16@bloomberg.net.

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.